Rio wants new minister to be across issues

GLOBAL miner Rio Tinto hopes the replacement for outgoing Resources Minister Martin Ferguson is across the big issues before making significant decisions.

Rio Tinto's president of Pilbara iron ore operations Greg Lilleyman said Mr Ferguson, who quit cabinet after Thursday's leadership vote, was well regarded as a sensible, straight forward sort of guy.

"He seemed to be well aware of the big issues in the industry and the pressures in the industry," Mr Lilleyman told AAP.

"We hope whoever the replacement is, is as well educated as Martin."

He declined to back any potential replacement but said most candidates would probably not have a background in the mining industry.

"Whoever it is needs to make sure they're aware of the issues before they start making too many decisions that will impact on us."

Mr Lilleyman, who is also president of the WA Chamber of Minerals and Energy, said newly appointed WA mines and petroleum minister Bill Marmion was familiar with the resources industry following his most recent stint as state environment minister.

Mr Lilleyman also said Rio, the world's second biggest iron ore producer, was upbeat about its prospects in coming years despite recent industry pessimism after Goldman Sachs cut its estimate for iron ore prices this year.

"We're in a strong position in the Pilbara," he said.

"We're at the very bottom of the cost curve and not going backwards is our intention, so whatever your forecast for the iron ore price, beyond that we'll be pretty well positioned."